American Samoa business hails wage freeze

Business leaders in American Samoa have hailed a move by the United States to freeze the territory's minimum wage.

The decision was taken by the U.S. Congress, which says it was responding to employer concerns, as well as a government report that shows automatic wage increases are harming American Samoa's economy.

The island's minimum pay had been set to increase by 50 cents in September, but that now stands to be delayed until at least 2015.

U.S. Congressman Eni H. Faleomavaega says while he supports the decision, he also believes American Samoa's workers should receive fair wages.

American Samoa Chamber of Commerce Chairman, David Robinson, told Radio Australia that the government needs to work harder to attract investment if business are going to be able to afford pay increases.

"You've got a very, very small private sector. There's nothing in the way of tourism, there's nothing in the way of manufacturing or anything like that and it's a very, very fragile economy," Mr Robinson said.

"The government and our congressmen have to do a lot of work in trying to persuade the U.S. Congress that even after 2015 we think it would be inappropriate to continue with the escalator clause."

Mr Robinson says so far he is not aware of any groups in American Samoa who are opposed to the freeze.

"People should realise...that it's better to have a job and have a reasonable wage rather than have the promises of large salaries and suddenly find that you're out on the street because the companies concerned can't afford to keep you anymore."